1. 1 Xcel Energy Webinar October 24, 2013 11:30 am to 1:00 pm CT VFDs Drive Efficiency: Learn how Variable Frequency Drives can benefit your facility.

2. 2 Cost of doing business Electricity costs typically account for approximately 95% of the cost to own and operate electric motors over a ten-year operating period. The purchase price plus installation, maintenance and other costs account for 5% over the same ten year operating period.* * (Source: Center for Energy Efficiency / Motors Decisions Matter)

3. 3 Fundamentals of VFDs Motors in the United States operate at a fixed frequency of 60 Hz (1 cycle every 1/60 seconds).

4. 4 Fundamentals of VFDs ► A VFD changes the frequency of the current going to the motor ► A reduction in frequency results in the shaft of the motor spinning at speeds lower than the standard 1200, 1800, and 3600 RPMs (depending on the motor)

5. 5 Benefits of VFDs ► Added Control – smoother acceleration & deceleration, automated response to system conditions (e.g. pressure, flow, etc…) ► Power Factor Correction ► Soft Start – reduction of high starting torque and current surges that can be up to eight times the full-load current ► Energy Savings – especially on variable-torque centrifugal fan and pump applications

6. 6 Energy savings potential ► Fans & Pumps offer the highest potential for savings ► Example: ► Flow Increase 10% ► Power increase 33% Small decrease in flow = Bigger decrease in power

7. 7 Energy savings potential ► Savings vary by application ► Applications such as extruders and conveyors may experience savings, but not to the same degree as fans and pumps. ► Right tool for the right job

8. 8 Market segments ► Industrial Processes – such as glass manufacturing, mining, refining ► Food processing ► Grocery Stores ► Commercial Space (retail & real estate) ► Schools & Universities ► Cold Storage ► Hospitals ► City waste water treatment plants, etc

9. 9 Common applications ► HVAC fans & pumps ► Refrigeration Compressors ► Air Compressors ► Conveyors ► Extruders …. Just about anything that utilizes an AC motor.

10. 10 Quick review ► VFDs offer operational and power consumption benefits ► Can be applied to a wide variety of end-uses ► Savings vary by end-use ► Pumps & fans greatest opportunities

11. 11 Example - The cost of a VFD For K-12 school purchasing a 15 HP VFD on Fan. 15 HP VFD on a fan operating a 15 HP motor: ► Cost for VFD - $2,443 ► Total labor costs - $1,910 These costs include also include:  Engineering - $300  VAC Tech - $255  Electrician - $255 ► Total projects costs for VFD - $4,353

12. 12 The cost of a VFD For this K-12 school ► 15 HP VFD rebate - $1,250 ► 60% of project cost - $2,612 ► Energy Saved - 9,920 kWh and estimated $575.00/year savings ► Project payback – 3.4 years

13. 13 VFD Upgrades yield Big return on a small investment The situation ► A resourceful non-profit with a 68,000 sq ft facility in the heart of downtown Minneapolis was looking for ways to maximize their operating budget ► In need of energy efficiency upgrades so they started with the low-hanging fruit type projects such as lighting. But did not stop there as they wanted to maximize the energy savings potential ► Much of the HVAC equipment had been installed in the 1960’s and air handling units did not have VFDs Case study: Greater Twin Cities United Way

14. 14 Case study: Greater Twin Cities United Way The Impact of installing two 15 hp VFDs ► 32,665 kWh in total energy savings ► $2,500 in rebates from Xcel Energy ► Less than 17 month payback ► Projected savings from the VFDs is $3,200 annually ► More control over their system

15. 15 Case study: City of Richfield VFD project—turning Water Into Savings The situation ► The water treatment plant relies heavily on constant speed motors and VFDs to maintain a steady pump “flow” as the water is transported out of the wells and to approximately 34,000 residents. ► Seven wells and multiple pumps ► 25 to 30-year-old motors and VFDs ► High energy costs ► The City didn’t want a hodge-podge system with dissimilar equipment. They wanted the pumps to run and operate as seamlessly as possible. ► Running similar equipment helped synchronize operations and improve efficiency.

16. 16 Case study: City of Richfield VFD project—turning Water Into Savings Results of the City’s Efforts ► 375,570 kWh in total energy savings ► $20,865 in rebates from Xcel Energy Additional Impacts ► Lower energy costs on each statement ► Increased reliability in motors & VFDs ► Ease of use with automated system ► Improved energy efficiency

17. 17 Quick review ► VFDs have energy savings benefits ► To see more customer case studies visit Responsible By Nature.com

18. 18 When VFDs are not beneficial ► Constant speed or power (hp): when a motor is set to run at full speed ► High static pressure installations: Drives on submersible pumps or any above ground pumps that operate systems with a high static dominated pressure level ► Poor Sequencing: The best sequencing for VFD systems depends on the end use application (Source: Esource.com)

19. 19 What’s most important to Facility Managers & Engineers ► Keep plant running – increase uptime ► Reduce plant operating costs ► Often heard – “Keep the facility running but don’t spend a nickel more than you need to…..”

20. 20 Motor Decisions Matter (MDM) Change the Purchasing Pattern ► Commitment ► Set goals ► Make action plan ► Implement plan ► Verification ► Recognize achievements ► Repeat cycle ENERGY STAR ®. 10-10-2013. US Environmental Protection Agency and US Department of Energy. http://www.energystar.gov

21. 21 More resources Motor Decisions Matter (MDM) ► Facility managers are increasingly under pressure to reduce energy costs, increase productivity and reduce greenhouse gas emissions. Sound VFD management is a key strategy to achieve these goals. ► Start today. Because managing a plan is easier than managing a crisis. ► Web address: motorsmatter.org

22. 22 More resources The Energy-At-Risk Financial Analysis Tool can help you… ► Determine the payback and cost of your VFD & other energy efficiency upgrades. ► Simple payback periods ► ROI ► Break-even analysis ► The cost of doing nothing ► Visit XcelEnergy.com to access this free tool

23. 23 Rebates ► To offset the costs of VFDs Xcel Energy offers rebates ranging from $400 to $8,000 ► On either a fan or a pump ► From 1 to 200 hp ► Custom rebates are also available for VFDs ► Chillers, air compressors, refrigeration compressors, etc ► Over 200 hp

24. 24 Quick review ► Xcel Energy offers rebates to off-set equipment costs ► We have tools to help you determine the cost of a VFD ► VFDs are beneficial in many market segments and many types of applications ► But are especially beneficial on fans and pumps ► Sometimes VFDs are not beneficial

25. 25 Contact us ► Let us help you determine if VFDs can benefit your facility. ► Contact your account manager or the Energy Efficiency Specialists at 1-800-481-4700 ► Or email us at energyefficiency@xcelenergy.com

26. 26 Thank you.